Answer
a) AD curve
Work Step by Step
A sudden crash in the stock market would reduce individuals' wealth and purchasing power. This would shift the AD curve inwards, affecting aggregate demand.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 33 - Part XII - Aggregate Demand and Aggregate Supply - Quick Check Multiple Choice - Page 742: 2
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